Key areas for South–South cooperation

Strengthening regional and interregional integration requires addressing both the ‘push’ factors that have encouraged developing countries to integrate more closely in recent decades and the ‘pull’ factors. Both gathered steam in the years following the global financial crisis of 2008/09, but for many developing countries, this simply intensified a trend towards South–South integration that had been proceeding for several decades already. Push factors include the frustrations with the limitations and failures of the global financial architecture and traditional multilateral lenders; the lacklustre economic performance and sluggish demand from northern economies in the post-crisis years; and a reappraisal of developing countries’ experience in GVCs and other forms of global trade. As long as the global financial architecture remains unreformed and developing countries do not feel sufficiently supported in times of economic crisis or for long-term development needs, and as long as global trade appears uncertain, then it is to be expected that regional integration will strengthen, if only as a default reaction.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Reduced Inequalities